Asian mar­kets plunge as ner­vous in­vestors watch elec­tion re­sults

Toronto Star - - NEWS -

Mar­kets in Asia were trad­ing lower Wed­nes­day morn­ing, as in­vestors re­acted to early re­sults and pre­dic­tions for the U.S. elec­tions, which showed gains for Don­ald Trump in cru­cial states.

Stocks in Tokyo, Hong Kong and other ma­jor mar­kets were down by more than 1 per cent as of mid-morn­ing, af­ter shares in Tokyo ini­tially opened higher.

In some cases, early trad­ing see­sawed, track­ing live elec­tion re­turns for bat­tle­ground states like Florida.

“We’ve seen re­ac­tions to swings back and forth from Hil­lary to Don­ald,” Stephen Innes, a se­nior cur­rency trader at Oanda in Sin­ga­pore, said in a phone in­ter­view.

The Ja­panese yen and Mex­i­can peso in par­tic­u­lar were weak­en­ing sig­nif­i­cantly in Asian trad­ing, he said, when­ever live elec­tion re­sults from Florida showed gains for Trump, the Repub­li­can nom­i­nee.

How­ever, Innes added that over­all vol­umes were light, sug­gest­ing that many in­vestors were tak­ing a wai­t­and-see ap­proach un­til re­sults be­came clearer.

The mixed re­ac­tion on Wed­nes­day fol­lowed a spell when in­vestors around the world ap­peared to be on edge over the U.S. elec­tion. In re­cent weeks, in tune with what ap­peared to Trump’s im­prov­ing for­tunes, the mar­kets took on a darker tone as re­tail in­vestors pulled money out of eq­uity funds and in­sti­tu­tional play­ers un­loaded some of their riskier in­vest­ments such as high-yield bonds.

TORU HANAI/REUTERS

A for­eign ex­change trader watches the elec­tion re­sults in Tokyo.

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